About this report

This report examines how private finance can be scaled to support nature-positive outcomes through practical investment models. It highlights how financial institutions can generate long-term value while restoring ecosystems and reducing environmental risks. The report aims to provide replicable examples, common terminology and insights for investors, financial institutions and policymakers seeking to close the biodiversity finance gap.

Scaling up private finance instruments for nature

The report argues that achieving biodiversity and restoration goals requires greater mobilisation of private capital. It presents ten investment practices across agriculture, forestry, water management, green infrastructure and urban restoration that demonstrate viable business cases for nature-positive investments. These examples show how nature-based solutions can deliver environmental benefits alongside financial returns.

Policy context

Nature investments support key frameworks including the EU Biodiversity Strategy, the Kunming–Montreal Global Biodiversity Framework and the EU Nature Restoration Regulation. The report notes a global nature-based solutions funding gap of US$571 billion annually by 2030, including US$111 billion in Europe, highlighting the need for increased public and private investment.

Identifying existing business models

The ten case studies illustrate a range of financing approaches.

The €2.4 billion ASR Dutch Farmland Fund promotes biodiversity and soil health through climate-smart agriculture and sustainable leasing arrangements. BNP Paribas Asset Management’s Environmental Solutions Fund invests approximately €85 million in environmental solution providers and outperformed the MSCI ACWI by 8.57% in early 2026.

Forestry examples include the €30 million SLM Silva Fund, which uses Continuous Cover Forestry and achieved an unrealised IRR of 10.29%, and Tornator’s €350 million green bond, which finances sustainable forestry, biodiversity restoration and carbon sequestration projects.

The Wyre River Natural Flood Management Project combines grants and an £850,000 private loan facility to deliver over 1,000 flood-management interventions. Rabobank’s Biodiversity Monitor links biodiversity performance to discounted loans, subsidies and premium pricing for farmers. Astanor manages more than €800 million in assets and invests in regenerative agriculture businesses that reduce biodiversity pressures and resource use.

Urban restoration projects include EBRD’s €20 million Chisinau River Bic rehabilitation loan and the €8 million Branche de Croix canal renaturalisation loan in France, both designed to reduce flood risks and improve ecosystem services.

Potential of finance instruments

Trends in investments for nature

The report identifies several trends: increasing use of green bonds, blended finance, sustainability-linked loans and natural capital assets; greater reliance on sustainability certifications; and longer investment horizons for forestry and regenerative agriculture. Performance-based financing tied to biodiversity, carbon, water and soil metrics is also expanding. Nature and carbon credits are emerging as complementary tools, while Nature-based Solutions are increasingly used to manage climate-related risks such as flooding, drought and erosion.

Investment suitability by sector

Different sectors require different financing approaches. Forestry is suited to green bonds and natural capital assets, while regenerative agriculture benefits from private equity, sustainability-linked lending and stacked financial incentives. Urban ecosystems and water infrastructure commonly use blended finance, impact loans and development-bank funding, generating returns through avoided costs, resilience improvements and enhanced asset values.

Conclusion

The report concludes that scaling finance for nature requires collaboration among financial institutions, governments, corporates and local authorities. Biodiversity-positive investments can reduce risks, improve resilience and create value through ecosystem services such as flood protection and water management. To accelerate investment, the report highlights the need for robust biodiversity metrics, credible certification systems, improved monitoring technologies, patient capital, blended-finance structures and clearer policy frameworks, including stronger biodiversity guidance within the EU Taxonomy and well-designed nature credit markets.